Capital, Revenue, Expense and Drawings are all classifications of owner’s equity accounts.
The owner bought a new truck for personal use. This event qualifies as a business transaction.
Net income or net loss is shown on the balance sheet.
A business transaction causes the financial position of the business to change.
Accounts Payable would be listed before a mortgage on a balance sheet.
A revenue account should normally have a credit balance.
The purchase of office equipment for cash affects both assets and liabilities.
A chart of accounts is the listing of all the accounts, with a number assigned to each.
The heading of a balance sheet answers three questions: Who? What? When?
Assets – Owner’s Equity = Liabilities
The term “debit” means increase, and the term “credit” means decrease.
Business debts owed to us by our customers are known as accounts payable.
All creditors have a claim against the assets of a business.
The Capital account represents the Owner’s claim on the assets of his business.
If a trial balance is in balance, the account balances are correct.
The number 410 indicates which type of account?
A debit to HST Recoverable would mean a business
Which of the following transactions would increase total liabilities?
What does a balance sheet show?
Which of the following statements about the general journal is incorrect?
How are assets listed on the balance sheet?
Which of the following transactions would affect owner’s equity?
What happens when an item that is subject to HST is sold by a business?
Prior to Metcalfe Enterprises going out of business, the accounting equation was the following:
A ($250 000) = L ($120 000) + OE ($130 000)
When the business closed down, the assets were sold for $200 000. As a result of this transaction, how much would the owner receive as her claim against the business?
Which of the following is not a source document?
What is the name given to an asset that is expected to last longer than one year?
Which of the following is not a current asset?
If the assets of a company are $10 000 and the liabilities are $7 000, then the correct figure for the Owener's Equity is:
If the owner of a business pays cash to repair the company's delivery truck:
A company spents $10 000 000 for an office building. Over what period should the cost be written off (expensed with depreciation)?
WORD BANK
Not all words are used, some are used mu
ASSETS, LIABILITIES. & OWNER’S EQUITY
BALANCE
BALANCE SHEET
BANK
CAPITAL
CASH
CREDITED
CREDITS
DEBITED
DEBITS
EQUITY
FISCAL
GENERAL LEDGER
LIQUIDITY
ONE
T-ACCOUNT
TRANSACTION
TRIAL BALANCE